Kodiak Gas Services reports Q1 EPS 39c, consensus 36c

Reports Q1 revenue $215.5M, consensus $220.55M. “2024 is off to a strong start marked by steady growth and solid execution in our core contract compression business,” stated CEO Mickey McKee. “Our focus on the Permian and other liquids-rich, associated gas basins allowed us to deliver strong first quarter results despite soft natural gas prices, and we stand to benefit from the coming growth in U.S. natural gas supply to meet demand from LNG projects scheduled to come online in the near term. We’re also excited about the evolving prospects for U.S. natural gas demand to support the build-out in data centers to support the increasing adoption of artificial intelligence. With the closing of the CSI Compressco acquisition, Kodiak now has the largest contract compression fleet in the industry and a broadened suite of offerings to help our customers meet their compression infrastructure needs. We’re pleased to announce revised 2024 guidance reflecting our expectations for the combined company, and we’ve made great progress towards realizing the significant synergies we see in the combination. Our capital allocation strategy remains focused on disciplined growth in our compression fleet combined with an attractive return of capital to investors through our dividend.”